Valuations & M&As
Financial Services institutions are hard to valuate, especially Money Transfer Companies and a number of MSBs. Determining the economic value of a business or company is both a science and an art. Experience in the field is crucial, as well as the management of expectations vs. reality. A business’ fair value is needed for various reasons, including sale value if the owners want to exit the market, establishing partner ownership if one partner wants to sell, and even divorce proceedings. Owners normally turn to professional business valuators for an objective estimate of the value of the business or to work on justifying the value they have in mind in front of potential buyers.
Mergers & Acquisitions in the Cross-Border Payments industry are occurring rapidly after a slowdown during the economic crisis. They follow a pattern very similar to the evolution of the market. In the traditional brick & mortar space, consolidation is taking place as companies need to leverage their fixed costs, increase the volume of operations, grow their agent or payout network, enter a new market, or tap into different ethnic groups served by the selling company. There is also a need to diversify operations: a money transfer/remittance firm acquiring a bill payment company or a top-up company buying an Money Transfer Operators (MTOs). The need to combine existing business models to leverage each side’s pros: we have seen virtual currency firms buying MTOs and MTOs buying Forex firms.
We at Mohr World have been active in this space, providing valuation services to US, Europe, and Latin America firms. Our Corporate Partner’s experience in the industry, either as owners selling their businesses, CEOs managing the selling or acquiring from companies in this space, and expertise in Due Diligence processes, make our experience vast and unique. We can help you and be the partner you need in the valuation, selling, or acquisition of a business in the money transfer, remittances & cross-border payment industry.